What Explains Variation in Title Charges. A Study of Five Large Markets.

摘要

Title charges include title insurance premiums and often charges for closing or settling a loan. Title insurance premiums vary considerably across metropolitan areas, from an average of $700 in Des Moines, Iowa, to $2,190 in New York City. Housing market institutions and regulations explain some, but not all, of the variation in premiums. The non-premium title charges vary as well. This report explains some of the remaining variation in title costs within five housing markets. Local regulations and home prices are substantially associated with costs. Characteristics of the home purchase that make title search more challenging are modestly associated with costs in some markets, but not others. Significant remaining variation between the fees charged by individual settlement agents suggests consumers would benefit from shopping for settlement services.